Genting HK issues profit warning for 17H1

Genting Hong Kong says it expects to record a widened net loss for the six months ended June 30, 2017, attributable to operating losses in its Crystal Cruises business, as well as additional depreciation of Genting Dream and shipyards.

Excluding the share of results of Travellers, Genting says it expects to record a consolidated net loss in the range of US$200 million to US$220 million for the six months ended 30 June 2017, as compared with a consolidated net loss of US$73.7 million in 16H1.

Genting said the decline is a result of an operating loss in Crystal Cruises due to a more competitive environment; full half year startup losses in 2017 in its German new building shipyards; additional depreciation and amortisation of new Genting Dream and shipyards; and additional interest of the new Genting Dream ship.

“Despite the decline in its consolidated net results, the performance of the underlying core Asian cruise business has improved in the second quarter of 2017 compared to the first quarter of 2017, and the group remains positive on the underlying core Asian cruise business for the second half of the year,” said the company in a Monday filing.